Business brokers Orange County, also referred to as business transfer agents or simply as intermediaries, have the duty of assisting sellers and buyers of privately owned companies to sell and buy business. Your business broker will estimate the value of your business; advertise it without disclosing its identity and handle discussions, interviews and negotiations with potential buyers. Simply put, the brokers facilitate the sale. Prior to hiring a broker to work with, it is good to start by understanding the type of services they offer.
Assist with valuation
The main job of a business broker Orange County is to help with establishing the most probable selling price valuation. The technique used in business valuation varies. There are many considerations that are made and they are mostly determined by the nature of your business as well as what you wish to sell. The valuation report is further matched with the prevailing market trends. Setting the right selling price is the key to selling fast and profitably.
Buyers will not just take a visual look of your business and make a decision. Their choice is based mostly on the data that they see. What this means is that although your business might look successful, serious buyers will want to view the financial records. Business brokers Orange County take the time to compile a comprehensive Information Memorandum on your company. This document is usually 15 to 30 pages long. It outlines the business for the prospective buyers.
Not every person that comes knocking at your door is serious about buying your business. Some people just love to snoop. These individuals might steal your business secrets and setup their own business that outsmarts yours. It is for this reason that confidentiality agreements ought to be drafted and signed by all potential buyers. In addition to that, your business broker will dig deeper into the buyer to determine if he has the means to buy your business and if he is really a serious buyer. Buyer screening will save you from a lot of headache when selling your business.
One of the main roles played by a business broker is that of marketing your business. This is mostly done using listing sites. The broker will also talk to potential buyers in his professional networks thus speeding up the process. Buyers tend to trust business brokers more than they trust individual sellers.
After the right buyer has been identified, the business broker Orange County will help with the negotiations as well as providing deal structuring advice. The broker doesn’t allow emotions to get in the way. He will remain objective throughout and advice you on the deals that you get.
These are the main types of services that are rendered by business brokers Orange County. Other services may include hourly consulting, providing management guidelines and so on. Make sure that you pick a broker who has been in the business for years. The last thing you want is the support of someone who relies on guesswork to market your business.
Business brokers Orange County have more experience in the purchase and sale of a business than you. They are without doubt the best teams to bring onboard when getting ready to exit. The problem, however, is that not all brokers out there have what it takes to help with the sale. Some are inexperienced while others don’t really take their job seriously. Considering your business is something you have worked hard to grow, you don’t want to work with a broker who will drain your profits or cause the sale to stagnate. To find the best broker to work with, you need to consider the following things.
Their fee structure
It is obvious that working with a business broker Orange County will not be free. You will need to pay the broker for his services. Although most brokers will ask for a commission which is paid once the sale is completed, some go as far as asking for huge down payments while with others you will still have to pay their commission even if you don’t sell the business through their firm.
You have to be very careful when choosing a broker. Go through the terms of service keenly and ensure that everything you agreed on is put in writing. In addition to that, you must take some time to negotiate with the broker. The fact that his commission is 10% doesn’t mean it can’t get to 5% or even lower.
Another very important thing you will need to consider is the specialty of the business brokers Orange County that you are thinking of hiring. It is not uncommon for a real estate agent to present himself to you as a business broker. However, the fact that he doesn’t work full time as a broker simply means you will have to deal with divided attention. Always work with a broker who has sold your type of business in the recent past and one who works full time as a business broker.
Never take a broker’s word for it. Take some time to dig deeper into what he is telling you. For starters, you need to make sure that he has sold businesses that are similar to yours in the recent past. Second, he should be able to provide you with references that you can contact. Third, you need to consider the number of clients the broker is currently working with. If he has no clients, you need to think twice about hiring him. On the other hand, if he has too many clients, there is a good chance he is overwhelmed.
These few considerations will help you move in the right direction when searching for a good business broker Orange County to work with. Whenever possible, go with a broker who has owned a business before. That way he will be able to understand your plight clearly.
Business brokers Orange County understand what it takes to sell a business fast and profitably. They have sold many businesses before and they have professional training on the same. Even so, it is important for you to note that not every broker out there has what it takes to handle your business. Some are inexperienced when it comes to the industry your business falls in whereas others don’t really work full time as business brokers. When deciding on the broker to bring on board, there are a couple of things you have to consider in relation to their qualification.
First and foremost, you want to work with a broker who has been certified. Make sure that the business broker Orange County you are about to hire is a Certified Business Intermediary. This is basically the gold standard when it comes to the realm of business brokerage. Being certified means the broker has satisfied the key requirements and adhere to the stringent guidelines set by the body. Yes brokers who have not been certified might be good in what they do but how sure can you be?
Member of a recognized business brokers association
Another very important thing you have to do is to make sure that you are hiring business brokers Orange County who are members of International Business Brokers Association. To verify the membership of the broker, you can do a simple search on the IBBA business broker search site at ibba.org. Be wary of brokers who lie about their membership. What else might they be lying to you about?
Years of experience
This is a no brainer. When hiring a business brokers, you want to work with one with the most experience. That way, you will be guaranteed of surefooted direction throughout the sale. The newbies might have the best training but the real world is different from the theoretical world they cover in professional training. An experienced broker will have a list of reliable contacts that he can use to speed up the sale process and will offer a wider range of services which will include business valuation. Ideally, you need to hire the broker who has a good track history that goes back a few years.
It’s his full-time job
You will be amazed by the sheer number of real estate agents who double as business brokers when it is convenient to them. Avoid such brokers. You should only work with business brokers Orange County who work full time as business brokers. Yes a license in real estate is an added advantage but ensure the broker is not vested in other professions. This way, you will be guaranteed of undivided support.
These are just the key considerations you need to make when hiring a business broker Orange County. Always follow your instincts. If you feel uncomfortable working with a certain service provider, you should either dig deeper into his profession or simply walk away. You also need to get recommendations from family and friends.
Business brokers Orange County work with both large and small businesses. Their main job is to make the sale process of a business as smooth as possible. Although hiring an experienced broker is the key to finding a reliable broker, this is not the only thing you should do. In addition to making sure that the broker can take on your business and ensuring he has all the papers needed to do the work, there are a couple of questions you need to ask him or her.
How many listings do you have currently?
The first is on the number of listings that he has at the moment. The number of listings a business broker Orange County has will give you an idea on the amount of time he will be able to dedicate to your business. An individual broker with too many listings might have taking up more work than he can handle and that may lead to problems along the way. On the other hand, if the broker doesn’t have any listings, it might be because his quality of services is not good and business owners are avoiding him. Prior to hiring, ensure the broker has a manageable number of listings.
Will you help with the sales contract preparation?
There is a lot of paperwork that goes into the sale of a business. They include legal agreements and tax forms among other things. The paperwork can take up a lot of your time especially if you don’t know how to complete them properly and you have no idea where to file them. Business brokers Orange County have sold many businesses that are similar to yours and they will be able to draft for you foolproof contracts and file them for you.
Do you have qualified buyers?
Having several qualified buyers means that the sale will be speeded up. This is because the broker will simply present your business to the buyers and avoid the hassle of having to contact hundreds of buyers who might not be in the mood for buying new businesses. All in all, it is good to note that having a large number of buyers is not necessarily a good thing. The fact that the broker has thousands of buyers on his fingertips is questionable. What you need to look for is a broker who has experience selling businesses that are similar to yours. Such a buyer will have a few dozen buyers that might find your business valuable.
How will you manage confidentiality?
Last but not least, you need to learn how the business broker Orange County will manage confidentiality. Keeping your competitors and customers from hearing about the sale is important throughout the sale. Hire a broker who has solid policies in place to help with confidentiality management.
Business brokers Orange County are highly sort after because of the experience in the business of selling companies. They are the people you need to eliminate the guesswork and smooth the entire process. However, before you commit to the first broker that comes your way, you have to account for the costs that come with working with a broker. This post takes a look at these costs.
Across the globe, the majority of business brokers work on commission. The commission you can expect from a business broker Orange County can be as low as 5% or as high as 15%. There are no set limits on how much a broker can charge for his services. The important point to remember is that this commission will be a percentage of the selling price. That means if you sell your business for a million dollars, you will pay the broker a whopping $100,000 if his commission is 10%.
The commission charged by the business brokers Orange County is negotiable. For example, if the sale involves freehold property like commercial premises or factors plus the business, the commission can vary. Most brokerage firms accept a lower commission on the sale of property and a higher commission on the sale of business, itself. The reason for this is because selling a business is far more complicated than selling property.
Marketing costs and contract
It is not always that a broker will commit to the commission alone. Other times, you will be required to pay a down payment. This is meant to cater for marketing and contract costs. The majority of brokers out there will require that you share the advertising and marketing costs. These costs will vary depending on the nature of your company.
The above are just some of the costs you can expect to deal with when working with a business broker Orange County. All in all, it is good to always remember that not every broker out there will deliver on his promises. To make sure there are no hidden costs or draconian terms, ensure that you read the contract keenly prior to committing. It also pays to work with a lawyer to help you understand the contract terms better. You should also know if you will be charged for business valuation. Most business brokers will offer valuation reports free of charge. If you will be charged for the service, know upfront how much that service will cost.
Business brokers Orange County have become an indispensable part of the team when it comes to the sale of businesses. They refine the process by making sure you don’t make the same mistakes newbies would otherwise make. Even so, not all business owners consider the option of working with a broker when selling their business. If you are one of those people, understanding the importance of working with an experienced broker will make you rethink your choice.
Experienced in marketing
Running a business is not the same as selling one. There are so many unknowns when it comes to the sale of businesses. You have to consider the legal requirements, understand the things that attract buyers, negotiate professional, qualify buyers, and provide favorable financing options for the buyers and so much more. Often times, when selling a business for the first time you have a higher risk of making mistakes. The business broker Orange County has sold many businesses in the past. He knows how to do things and how to avoid mistakes. From advertising your business to dealing with buyers, the broker will eliminate the guesswork.
Selling a business takes time. It is also a tedious process considering you have to keep meeting up with buyers and pushing the paperwork. All the work involved in the sale of a business can distract you from the core operations of your business. Needless to say, if your business is not performing as efficiently, its value will go down and buyers will either have a field day or abandon you all together. Even with a solid business valuation report, you have to keep your business running. That is the only way you will be able to keep its value from going down.
Better buyer qualification
One thing you will notice with business brokers Orange County is that they are more comfortable and confident requesting the disclosure of the finances of potential buyers. This is why they are more efficient in qualifying buyers. Moreover, with experience dealing with many buyers, the brokers have an added advantage in dealing with potential buyers. They understand how different buyers behave and will use this to their advantage during negotiations.
They are unbiased
The problem with selling a business on your own is that you are emotionally attached to it. It is very easy to change your mind halfway through a sale. The business broker Orange County, on the other hand, is independent. He will remain detached throughout the sale. Emotions will not cloud his decisions.
Working with business brokers Orange County makes more sense. Your only duty is to find the brokerage firm that has lots of experience and ones that have successfully sold businesses that are similar to yours in the recent past.
Business brokers Orange County offer everything you need to sell fast and at the right price. The problem, however, is that not every broker out there will be perfect for you. If you wish to avoid the hassle, it is imperative that you hire the best person for the job. Spend time looking at what different brokers have to offer before settling on one. Once that is done, here are some of the things you need to do when getting ready to meet up with the business broker for the first time.
Have a good reason for selling
The first thing a business broker Orange County will want to see is a good reason for selling your business. Brokers don’t get paid until the sale is concluded. As a result of this, they are very cautious of who they bring onboard. If you are not a serious seller, they will choose not to take your case. You may be serious about selling the business but if you don’t have a good reason for doing so, some brokers may choose to avoid you. Research some more to learn about the best reasons for selling business. You should then present the broker with the best reason why you are considering the sale.
Take with you all the facts and figures
Another thing you will have to do is to give the business brokers Orange County all the facts and figures related to your business. The work of the broker is to sell your business on your behalf. He will not be able to do that if he doesn’t have insider information about your business. The broker will need all relevant business documents in order to prepare a good summary. They will need a brief history of your business, location as well as financial information. The more information you give him the better.
Although most brokers offer valuation services, it never hurts to get an independent valuation report. The business valuation report will help the broker focus on the weaknesses of your business and advice you accordingly so that you are able to get a better selling price and sell fast.
Your exit preferences
Last but not least, you will have to inform your business broker Orange County of your exist strategy. Do you want to remain in control of your business or do you wish to transfer ownership completely to the buyer? Your preferences will inform the decision of the business broker.
These are just some of the important things you will have to get ready prior to contacting a business broker. Never rush things either. How much information a broker has on your business will determine how effective he is in selling your business.
Business brokers Orange County know how to sell a business fast and to the right buyer. This is their area of specialty and most of them are good in what they do. Even so, this does not mean you commit to just any broker that comes your way. To avoid regrets down the road, there are a couple of things you should do prior to picking a broker.
Don’t ignore his experience
Getting professional training is one thing but doing what you are trained to do is a completely different thing. In addition to making sure the business broker Orange County you are about to hire has the necessary training, your main focus needs to be on his experience. How many years has he been in business and how many businesses that are similar to yours has he sold? The idea here is to avoid the trial and error. Working with an inexperienced broker is often worse than selling on your own.
Take his commission seriously
The commission a business broker will charge is a percentage of the total selling price. If the commission is 10% and you sell your business for a million dollars, you will be paying the broker a whopping $100,000. That will definitely bite into your profits. Try and negotiate on the commission as much as you can. It is possible for a broker to take his commission to less than 5%. You should also understand that with the more prominent business brokers Orange County, negotiating on the commission will be hard.
Consider his track record
Having being in the business for years is not enough. You need to take a look at his track record. How many businesses did he close in the last 12 months? If he hasn’t sold a single business in years, then this is not the right person to bring onboard. You also need to read reviews on the broker. Are his past clients happy?
Know his specialty
You will be amazed by how many real estate agents double as business brokers. Even though it is good to hire a broker with a real estate license when selling a business, it is imperative that you hire the broker who works full-time as a business broker. The last thing you want is to work with someone with divided attention.
Get everything in writing
Always get everything in writing. The contract you sign is what will serve as your proof. If there is no agreement with all the agreed terms, your claims will only be taken as ‘he said she said’. In addition to that, you must refrain from overcommitting. You don’t have to sign a contract that will lock you in for a year. You can negotiate for a 90 day contract. That way, you will be able to leave if the business broker Orange County is incapable of delivering on his promises.
Business brokers Orange County play a very important role in the sale and purchase of businesses. It is because of their important role that more business owners are considering the option of working with brokers when selling their businesses. All in all, it is good to note that not every broker out there will help achieve the goals you are aiming at. Below are some important considerations you need to make before bringing a broker onboard.
Consider his experience
Experience counts when it comes to the sale of a business. The broker you hire must have years of experience selling businesses and must have sold a business that is similar to yours in the recent past. This is the only way you will be guaranteed of great support throughout the sale without relying on guesswork. The business broker Orange County you hire must have a proven resume.
There are so many realtors out there that double as business brokers. Although they may have the experience, not specializing in one area will mean divided support. This may cause the sale to go badly. Therefore, when deciding on the brokerage firm to use, you must go with the ones that specialize in business sales and purchases. It is also good to check if the broker you hire has a real estate license. This will come in handy if you will be selling your business together with the land and buildings.
Before you hire a business broker Orange County, it is very important that you take note of the types of businesses he has been selling. A broker that has never sold a multimillion dollar business will not be able to give you the support you need when selling a business that is valued at over 10 million dollars. You want someone who has sold businesses that are similar to yours. The brokerage firm needs to be big enough to handle the size of your business. The last thing you want is delays just because the firm lacks the manpower and resources needed to handle the deal.
You must also pay attention to the fee. Business brokers Orange County charge commissions. This is usually a percentage of the total selling price of your business. The lower the percentage is the better. Try and negotiate a better deal with the broker. Don’t settle for the asking price.
The rule of thumb when working with a business broker Orange County is to avoid overcommitting. Even if the terms of service are acceptable, you need to not overcommit. You don’t want to be locked in a contract with a service provider that is incompetent. You must also trust your gut when deciding on the broker to bring onboard.
Business brokers Orange County see to it that the sale of a business runs smoothly. They achieve this by linking sellers with the most qualified buyers and also offering professional advice and help throughout the sale. However, the services of a broker will not be enough if you don’t take time to review the sale process. In this article, we will be taking a look at the crucial points you should understand before initiating the sale.
Role of the business broker
It is obvious that the first professional you should bring onboard is the business broker Orange County. This is because the broker has handled many similar transactions in the past and will help you move in the right direction. One fact you need to understand about brokers is that they are simply facilitators. They will offer guidance throughout the sale. They can also be hired by business buyers to offer professional advice. A good broker will help with business valuation. Once the sale is concluded, you will need to pay the broker an agreed commission.
Duration of a typical sale
Selling a business takes time. It will take between 6 and 8 months to complete the sale. The duration may be shorter or even longer depending on the nature of business that is being sold. The most important thing you need to do is to seek advice from a business Orange County on matters pricing. Wrongly pricing the business will lead to problems. Buyers will get their own valuation report before committing to the set price. Make sure that the price is in line with the market value.
Importance of financing
Most businesses that are on sale remain on the market for years mostly because buyers lack financing options. If you want the deal to close fast, you should consider offering buyers attractive financing options. Most business brokers Orange County will help with financing. They use their professional connections to give buyers the most suitable financing options.
Relevance of confidentiality
When selling a business, you may have heard that as few people as possible should know of the sale. The reason for this is because the more people learn of the sale, the more problems you will get to deal with. For example, when your employees, lenders and suppliers learn of the sale, they might abandon you. Needless to say, this will drive the value of your business lower. One of the key roles of the business broker Orange County is to draft a foolproof confidentiality agreement.
The sale of a business is not something you should rush. Take every step with care. You must also enlist the help of a highly trained business broker to help with the sale.